CHANDIGARH: The Punjab government which is under pressure from the Center to overcome its financial mess, may find its ‘way barred by the extra expenditure being incurred on additional allowances to legislatures and the Joan waiver for the Scheduled Castes
The loan waiver, according to preliminary estimates, would cost the state exchequer Rs 30 crore but may raise to Rs 50 crore after the final eligibility list is drawn for which political favoritism is not ruled out. The additional perks for legislators would result in a recurring expenditure of more than Rs one crore annual. The state government is committed to go ahead with these measures though financial experts are of the view that the exchequer cannot bear the extra burden.
Contrary to the 1992-93 budget proposal the government is relevant to go in for additional re= sources mobilization to the tune ‘of Rs 100 Crore, This means that the extra expenditure being. incurred on the loan waiver and the allowances would have to be diverted from planned schemes as their would be no scope or an out go from revenue expenditure on administrative services and the police. The experts describe Punjab as a “soft” state meaning that the government does not like To look harsh to tax payers, neither can it ignore relief to the weaker sections.
What worries the government is, the forthcoming visit of the 10th Finance Commission to Punjab ‘and it is anxious to streamline the finances by that time. It has sought the help of the National Institute of Public Finances for this onerous task. The institute provides Consultancy to stale governments to which Punjab is resorting with an annual membership fee of Rs One lakh and some other expenses.
On a request of the state govern ment institute has agreed to prepare are portion Punjab finances in about three months.
The Punjab government is also sending its representative to the meeting called by the Reserve: Bank of India in Bombay on July 14 or a review of fiscal measures has to present its case on financial ‘management which, officials admit may not look convincing in view of the committed extra spending. Though the Punjab government does not favor abolition of the octre, it may come under pressure from the Center to do away with this harassing system.
Article extracted from this publication >> July 24, 1992
